Private sector briefed on SCP scheme

THE Ministry of Finance (MoF) continued yesterday its road show in its effort to inform the officers and staff from private sector on the Supplemental Contributory Pension (SCP) scheme.

More than 50 companies were invited to attend the talk which was held at the Ministry of Finance Building.

The briefing was presented by Hj Mohd Roselan Hj Mohd Daud, MoF deputy permanent secretary (Policy and Administration).

The announcement made by His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam in his 63rd birthday titah regarding the scheme was considered to be especially encouraging by many as it involves mandatory contributions by both employers and employees.

The SCP is a defined contribution scheme that requires participants and employers to contribute by law every month.

As with the existing Employees' Trust Fund (TAP), all citizens and permanent residents working in the public, private and informal sectors are required to join the SCP, requiring them to chip in a monthly minimum of 3.5 per cent of their earnings.

The main objective of the SCP is to ensure everyone will be able to retire at the compulsory age of 60 with a minimum pension of $150 a month. Added with the existing $250 "Old Age" pension, participants will have at least $400 a month to live on for the rest of their lives when they retire.

The scheme is enough to cover monthly annuity for a minimum of 20 years after mandatory retirement, if the basic requirements of the new pension scheme have been met.

A question and answer session was held following the briefing to clarify some issues pertaining to the SCP Scheme for officers and staff from various organisations in the private sector. (ADI1) The Brunei Times